Power Machines as an example of competitiveness of the Russian business. London, 12 th of April 2005

Transcription

1 Power Machines as an example of competitiveness of the Russian business London, 12 th of April

2 The Power Machines Group Power Machines (former Energomachexport) carries out the sales and marketing function for complete equipment delivery and turnkey projects both domestically and internationally LMZ designs, manufactures, maintains and installs steam (20-1,200 MW), hydro (4-20 MW, MW) and gas ( MW, 160MW - Siemens licence) turbines Electrosila designs and manufactures turbo generators (with a maximum capacity of 1,200 MW), hydro generators (with a maximum capacity of 720MW) and electric motors of various sizes KTZ (Kaluga Turbine Works) maintains steam turbines of capacity up to 35 MW, for industrial and military purposes ZTL (Turbine Blades Plant) is the dominant CIS specialist manufacturer of turbine blades for steam and gas turbines TzKTI is a scientific research and development venture specialising in developing new and competitive technology 2

3 Order book regional structure The order book of Power Machines exceeds $ 1 billion as of April 2005 Other 10,4% Russia and CIS 14,6% Asia 50,4% Europe 14,2% Middle East 10,4% 3

4 Competitiveness in power industry Competitiveness in power industry is specified by the following factors: Technical-and-economic indexes of manufacturing equipment Equipment price appeal References existence Positive track-record of the Company 4

5 The basic competitive advantages of PM PM has all the facilities to compete successfully with leading manufacturers on the priority markets of the Company where the price-quality ratio is an order-winner Technologies: high reliability, lower expenses for service in comparison with competitors Price: about 15-20% lower in comparison with the Western competitors Good history on the key markets, such as Russia, Asia and the Middle East 5

6 Technology solutions PM is developing 1500 MW steam turbine with a 3000 rpm range of speed - Company is adopting exhaust blade for low pressure cylinder made of titanium with working section of 1200 mm manufacturing PM executes rehabilitation of turbines with unique and high-efficiency technology - Rehabilitation of low pressure cylinder of 200 and 300 MW turbines is executed on the basis of 960 mm and 1200 mm exhaust blade and unit-forged rotor, which significantly increases durability of low pressure cylinder. Thereby rotor s mass-volume specifications remain the same, so there is no liability for understructure reconstruction 6

7 Technical level of PM NPP turbine-set NPP Country Manufacturer Output (МW) Heat rate (kj/kwh) Arabella France Alstom Byron USA Westinghouse Fermi 2 USA General Electric Tiange Belgium Alstom Fukusima Japan Hitachi Rovenskaya Ukraine PM Tian Wan China PM Leningradskaya* Russia PM * Planned putting into operation in the year

8 Technical level of PM TPP turbine-set SPP Country Manufacturer Output (МW) Heat rate (kj/kwh) Niederhausen C Germany Siemens 1012 Schwarze Pumpe 1,2 Kostromskaya GRES 1675 Germany Siemens Russia PM Alholma Finland PM

9 Technical level of PM turbo generators Performance PM World level Achieved output, MW Range of speed, rpm Efficiency, % 98,6 98,85 98,6 98,85 Rotor vibration, micron Noise level, db

10 Technical level of PM hydro generators Performance PM World level Achieved output, MW Range of speed, rpm Efficiency, % 97,2 98,7 97,0 98,6 Working life up to 50 years years Margin of safety 0,999 0,995-0,999 10

11 Largest tenders won by PM Barh TPP Turn-key construction of 3*660 MW power generating units with a supercritical parameters equipment. Main competitors: BHEL with Siemens. Contract value - $270 million Sipat TPP Turn-key construction of 3*660 MW power generating units with a supercritical parameters equipment. Main competitors: Alstom and Toshiba. Contract value - $250 million El Cajon HPP Equipment delivery for 2*375 MW generating units. Main competitors: General Electric and Voith Siemens. Contract value - $147 million 11

12 Latest tenders won by PM Quileco HPP Designing, manufacturing, delivering, installing and adjusting of hydro turbines for 2*36,5 MW power generating units. Main competitors: Voith Siemens Hydro, Alstom and General Electric. Contract value - $22 million Caracoles HPP Delivering of 2*62,6 MW turbines, wireways, pressure tunnel, supporting system and other hydro mechanical equipment. Main competitor - Voith Siemens Hydro. Contract value - $10,9 12

13 Strategic priorities of PM - PM is not an EPC-contractor - PM doesn t work with BOT projects - PM is a manufacturing company Our objectives: -To sell maximum volumes of our equipment with an ultimate efficiency - To be a general supplier of a machinery hall in the projects carefully selected with respect to risks and our financial capacities 13

14 Russia and CIS strategic markets - Currently Power Machines produces most of its power generating equipment for export - Hereafter Russia and CIS will be essential markets for Power Machines: building of new power assets and programmes of modernization of existing power assets 14

15 Main trends of Russian market Energy strategy of Russia until Program of modernization of power units - Program of construction of new power stations - Power saving Restructure of RAO UES - Projects implemented and invested by RAO UES -OGKs/TGKs new clients Development of nuclear power - Water-cooled power reactor 1500 project - Completion of existing NPP Russia s entrance into the WTO - Import fees decrease business struggle at the Russian market 15

16 Engineering policy Concentration on our traditionally effective products: steam and hydro turbines and generators Development of the gas turbine GTE-65 and high utilization of GTE-160 potential Complex solutions with regard to service and equipment rehabilitation 16

17 PM as a generator of Russian economy Certainly, state plays a great role in competitive edge of the economy achievement, creating an attractive conditions for investments Successful company is an attractive investment object, so it is impossible to overstress the importance of the companies role in the process of Russian business competitiveness improvement ,9 686, , ,2 78,9 276,7 110,6 128,1 179,6 215, (П) Sales Gross profit 17

18 Power Machines by Market cap. not less than $ 900 million - Sales $ 1000 million -Order book $ 3billion - EBITDA 17% - Contract s share not less than 50% 18